How to combat inflation in daily life

Inflation is at 8.5% in the US as of May 2022, its highest point in the past 40 years. While central banks and governments try to fix the problem on the macro scale, there are practical things you and I can do to minimize inflation’s effects.

Save on food and prioritize your purchases. Not all grocery stores are equal. Shop at the super-discount ones like Costco or Aldi, and prioritize products actually needed for main meals. Cut back on meat while prices are up and use coupons where possible.

Be smart with appliances. You can save on utilities with minimal effort. Turn off lights and other things if you don’t need them and don’t run the dishwasher or washing machines and dryers unless full. And if manageable, cut the heat or AC levels, or turn off when not at home.

Reassess your living situation. If your rent has increased due to inflated prices, don’t necessarily settle. See if moving to another place with a move-in special and lower rent is worth it, or check if signing a longer lease at a reduced rate in your current unit is possible.

Think twice before buying a house. The housing market has been on fire the last 5 years. Though sky-high housing prices may continue through 2022, with federal interest rate changes expected, housing prices should start to cool over the next year.

Make it affordable if you do buy. For those that can’t wait to buy, make sure you’re following good financial rules when purchasing. Save up to make a large down payment and ensure the monthly mortgage payment is less than 25% of your monthly income.

Avoid the new car. Like houses, car and gas prices are also higher than ever. Now is not the time to be buying a new car if it isn’t totally necessary. Consider buying a used one if needed or look for alternative transportation options, like carpooling or cycling.

Increase your income. We live in a side-hustle economy and there are plenty of opportunities for the average person to make some extra money. Pick up a delivery or driving gig, or a part-time retail job. Ask for a raise as many companies see the issue with cost of living.

Reduce overall spending. The most obvious way to protect your wallet in any economy is to cut down on spending. Download a free budget app, buy the cheaper off-brand product options, avoid impulse purchases online and in stores, and opt for free activities on the weekend.

Bottom line: The issue with inflation is that many struggle to alter their spending patterns and lifestyle choices even as prices rise. Giving up a few luxuries and simply being smart about what you buy and the purchase timing can make a huge difference where it counts.